Mastercard Dreamonomics Report: APAC SMEs Demand Integrated Tools and Payment Control

Mastercard’s new Dreamonomics Report highlights a critical friction point for Asia Pacific SMEs: while digital adoption is surging, the resulting fragmentation of tools and payment methods is hindering operational efficiency. To address this, Mastercard is piloting its "One Credential" solution in India with City Union Bank, consolidating multiple payment accounts into a single, flexible card experience.

What was announced

The Dreamonomics Report indicates that 74% of SMEs in the Asia Pacific region are optimistic about their future, with 61% frequently experimenting with new ideas. However, this growth is accompanied by a desire for stability, as 69% of respondents prioritize predictability in their operations. The primary hurdle identified is not the lack of technology, but the complexity of managing it. On average, APAC SMEs utilize five different business tools and four distinct payment methods, including electronic bank transfers (59%), instant payments (55%), debit cards (52%), and credit cards (47%).

The pilot of Mastercard One Credential with City Union Bank (CUB) in India represents a direct response to this fragmentation. This solution allows users to link multiple eligible payment relationships—both consumer and commercial—to a single primary card. Transactions are then automatically routed based on preset preferences, such as the merchant category or the transaction amount. In India, where 63% of SMEs expressed interest in real-time payments and 39% sought combined credit and debit functionality, this "one credential" approach aims to simplify reconciliation and improve cash flow visibility. Furthermore, the report notes that 74% of SMEs are interested in AI’s potential, particularly for fraud and security protection, which remains a high priority for 70% of businesses in the region, despite only 39% currently using dedicated cybersecurity tools.

"Businesses don’t think in terms of payment rails or funding sources. They think about paying suppliers, managing cash flow and keeping operations moving," said Anouska Ladds, executive vice president, Commercial & New Payment Flows, Asia Pacific, Mastercard. "Every business decision today has a financial dimension. SMEs need payment experiences that fit how they actually operate, giving them the flexibility to stay in control of their working capital, pivot faster to change and adapt to new trends and their customers’ needs."

Anouska Ladds, executive vice president, Commercial & New Payment Flows, Asia Pacific, Mastercard.

The companies involved

Mastercard is a global technology company in the payments industry, operating a vast processing network that connects consumers, financial institutions, merchants, and governments across more than 210 countries and territories. The company has a significant presence in the Asia Pacific region, where it frequently collaborates with local financial institutions to deploy new payment rails and digital solutions. FF News has tracked Mastercard’s extensive market activity through nearly 1,000 previous reports, documenting its transition from a traditional card network to a multi-rail payment technology provider that emphasizes integrated digital ecosystems over standalone products.

City Union Bank Ltd. (CUB), the partner for the One Credential pilot, is an Indian financial institution headquartered in Kumbakonam, Tamil Nadu. Operating via its website at cityunionbank.bank.in, the bank has a long-standing history in the Indian market, focusing on providing a range of retail and commercial banking services. By partnering with Mastercard for this pilot, CUB becomes the first in India to offer a consolidated credential experience, targeting the specific needs of SMEs and consumers who require more granular control over their spending and funding sources without the burden of managing multiple physical or digital cards.

What FF News has reported before

FF News has extensively covered Mastercard’s global efforts to empower entrepreneurs and expand digital acceptance. Recently, we reported on how Bank Audi and Mastercard to Support 10,000 Lebanese Entrepreneurs via neo Business, a move that mirrors the SME-centric focus seen in the Asia Pacific region. Similarly, the company’s infrastructure work was highlighted in Mastercard and Banque du Liban Partner to Drive Digital Payment Acceptance in Lebanon.

The broader shift toward AI-integrated payments, a key interest for SMEs in the Dreamonomics Report, was also reflected in our coverage of Ant International Open-Sources Agentic Mobile Protocol to Power Global AI Agent Payments. Additionally, Mastercard’s leadership changes, such as when Mastercard Names Sidney Massunaga as Country Manager to Lead Mexico Strategy, demonstrate the firm's ongoing commitment to regionalized management strategies that align with local market demands like those identified in India.

What this means

This announcement signals a shift in the fintech sector from "feature parity" to "experience consolidation." For years, the industry has focused on giving SMEs more ways to pay, but the Dreamonomics data suggests that this has created a management burden that now threatens productivity. By moving toward a "one credential" model, Mastercard is effectively challenging the traditional siloed card issuance strategy. This puts pressure on regional banks and niche fintechs to move beyond standalone apps and toward interoperable ecosystems. The high interest in AI for security also suggests that SMEs no longer view fraud prevention as a back-office function, but as a core business capability that influences their choice of financial partner.